Levine speaks

One thought on “Levine speaks

  1. LarryAtIIATMS

    Little of the NY media understands the difference between revenue sharing and competitive balance tax.

    I think that the latest CBA has not been well reported. Last year, I loudly predicted here that the revenue sharing system would not survive in its then-current form. My best guess is that during CBA negotiations, the Red Sox, Yanks and others screamed bloody murder about how the Marlins and others used their revenue sharing, and also about how big market teams like the Phillies and Rangers were able to collect revenue sharing money. Add to this that for most of baseball, the biggest competitive balance problem was (still is) the Yankees' willingness to exceed the competitive balance tax limit on an on-going basis (this is by far not the biggest problem baseball has, but I think it is perceived as the big problem).

    As a result, I think a deal was made to make revenue sharing more favorable to big-market teams, in exchange for the agreement of those teams to use best efforts to respect the soft salary cap represented by the competitive balance tax. I should stress: I don't know if any such deal was made.

    But it is interesting to note that the Dodgers have effectively stated that they don't give a damn about the competitive balance tax. It will be interesting to see if other teams follow the Dodgers, and whether the Yankees are willing to have anyone outspend them.

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